A BILL to amend and reenact article 7, chapter 64 of the Code of
West Virginia, 1931, as amended, relating generally to the
promulgation of administrative rules by the Department of
Revenue; legislative mandate or authorization for the
promulgation of certain legislative rules by various executive
or administrative agencies of the state; authorizing certain
of the agencies to promulgate certain legislative rules in the
form that the rules were filed in the State Register;
authorizing certain of the agencies to promulgate certain
legislative rules in the form that the rules were filed in the
State Register and as amended by the Legislature; authorizing
certain of the agencies to promulgate certain legislative
rules with various modifications presented to and recommended
by the Legislative Rule-Making Review Committee; authorizing
certain of the agencies to promulgate certain legislative
rules with various modifications presented to and recommended
by the Legislative Rule-Making Review Committee and as amended
by the Legislature;authorizing the State Tax Department to
promulgate a legislative rule relating to the payment of taxes
by electronic funds transfer; authorizing the State Tax
Department to promulgate a legislative rule relating to the
commercial patent incentives tax credit; authorizing the State
Tax Department to promulgate a legislative rule relating to an
exchange of information agreement between the State Tax
Department and the Department of Commerce, the Department of
Transportation and the Department of Environmental Protection;
authorizing the Insurance Commissioner to promulgate a
legislative rule relating to the licensing and conduct of
insurance producers and agencies; authorizing the Insurance
Commissioner to promulgate a legislative rule relating to
surplus lines insurance; authorizing the Insurance
Commissioner to promulgate a legislative rule relating to
insurance holding company systems; authorizing the Insurance
Commissioner to promulgate a legislative rule relating to
continuing education for individual insurance producers;
authorizing the Insurance Commissioner to promulgate a
legislative rule relating to mini COBRA; authorizing the
Insurance Commissioner to promulgate a legislative rule
relating to workers’ compensation insurance for state
agencies; authorizing the Division of Banking to promulgate a
legislative rule relating to residential mortgage lenders,
brokers and loan originators; authorizing the Alcohol Beverage
Control Commission to promulgate a legislative rule relating
to licensed retailer operations; authorizing the Alcohol
Beverage Control Commission to promulgate a legislative rule
relating to the licensing of retail outlets; authorizing the
Racing Commission to promulgate a legislative rule relating to
simulcast pari-mutuel wagering at an authorized gaming
facility in a historic hotel; authorizing the Athletic
Commission to promulgate a legislative rule relating to mixed
martial arts; and authorizing the Board of Directors of the
West Virginia Health Insurance Plan to promulgate a
legislative rule relating to a premium subsidy.

Be it enacted by the Legislature of West Virginia:

That article 7, chapter 64 of the Code of West Virginia, 1931,
as amended, be amended and reenacted to read as follows:

(a) The legislative rule filed in the State Register on April
21, 2011, authorized under the authority of section five-z, article
ten, chapter eleven of this code, modified by the State Tax
Department to meet the objections of the Legislative Rule-Making
Review Committee and refiled in the State Register on August 5,
2011, relating to the State Tax Department (payment of taxes by
electronic funds transfer, 110 CSR 10F), is authorized with the
following amendments:

On page four, subsection 3.2., by striking out all of
subsection 3.2. and inserting in lieu thereof a new subsection
3.2., to read as follows:

3.2. The threshold amount is $100,000.00 in tax liability per
tax type per taxable year or reporting period beginning on or after
January 1, 2004, subject to subdivisions 3.2.1., 3.2.2., 3.2.3. and
3.2.4. of this subsection.;

And,

On page four, after subsection 3.2., by inserting four new
subdivisions, designated subdivisions 3.2.1., 3.2.2., 3.2.3. and
3.2.4., to read as follows:

3.2.1. For tax years beginning on or after January 1, 2013,
the threshold amount for determining whether a taxpayer shall pay
electronically is $50,000 in tax liability paid for a single tax
type in the immediately preceding tax year: Provided, That for tax
years beginning on or after January 1, 2013, any taxpayer that pays
more than $50,000 for any tax type in the immediately preceding tax
year shall electronically pay the taxes for all tax returns filed;

3.2.2. For tax years beginning on or after January 1, 2014,
the threshold amount for determining whether a taxpayer shall pay
electronically is $25,000 in tax liability paid for a single tax
type in the immediately preceding tax year: Provided, That for tax
years beginning on or after January 1, 2014, any taxpayer that pays
more than $25,000 for any tax type in the immediately preceding tax
year shall electronically pay the taxes for all tax returns filed;

3.2.3. For tax years beginning on or after January 1, 2015,
the threshold amount for determining whether a taxpayer shall pay
electronically is $10,000 in tax liability paid for a single tax
type in the immediately preceding tax year: Provided, That for tax
years beginning on or after January 1, 2015, any taxpayer that pays
more than $10,000 for any tax type in the immediately preceding tax
year shall electronically pay the taxes for all tax returns filed;

3.2.4. Tax Commissioner may determine the tax types for which
electronic payment of taxes is not required.

(b) The legislative rule filed in the State Register on July
18, 2011, authorized under the authority of section ten, article
thirteen-aa, chapter eleven of this code, modified by the State Tax
Department to meet the objections of the Legislative Rule-Making
Review Committee and refiled in the State Register on November 22,
2011, relating to the State Tax Department (commercial patent
incentives tax credit, 110 CSR 13Q), is authorized.

(c) The legislative rule filed in the State Register on July
29, 2011, authorized under the authority of section five-s, article
ten, chapter eleven of this code, modified by the State Tax
Department to meet the objections of the Legislative Rule-Making
Review Committee and refiled in the State Register on November 22,
2011, relating to the State Tax Department (exchange of information
agreement between the State Tax Department and the Department of
Commerce, the Department of Transportation and the Department of
Environmental Protection, 110 CSR 50G), is authorized.

§64-7-2. Insurance Commissioner.

(a)The legislative rule filed in the State Register on July
28, 2011, authorized under the authority of section ten, article
two, chapter thirty-three of this code, relating to the Insurance
Commissioner (licensing and conduct of insurance producers and
agencies, 114 CSR 2), is authorized.

(b) The legislative rule filed in the State Register on July
28, 2011, authorized under the authority of section ten, article
two, chapter thirty-three of this code, relating to the Insurance
Commissioner (surplus lines insurance, 114 CSR 20), is authorized.

(c) The legislative rule filed in the State Register on July
28, 2011, authorized under the authority of section ten, article
two, chapter thirty-three of this code, modified by the Insurance
Commissioner to meet the objections of the Legislative Rule-Making
Review Committee and refiled in the State Register on October 21,
2011, relating to the Insurance Commissioner (insurance holding
company systems, 114 CSR 35), is authorized.

(d) The legislative rule filed in the State Register on July
28, 2011, authorized under the authority of section ten, article
two, chapter thirty-three of this code, modified by the Insurance
Commissioner to meet the objections of the Legislative Rule-Making
Review Committee and refiled in the State Register on October 21,
2011, relating to the Insurance Commissioner (continuing education
for individual insurance producers, 114 CSR 42), is authorized with
the following amendment:

On page three, subsection 4.2., by striking out all of
subsection 4.2. and inserting in lieu thereof a new subsection 4.2.
to read as follows:

4.2. The commissioner shall, in consultation with the board,
develop a program regarding continuing education requirements
during the transition to the new biennium period established
pursuant to the 2012 amendments to this rule; such program shall be
posted on the agency website.

(e) The legislative rule filed in the State Register on July
28, 2011, authorized under the authority of section ten, article
two, chapter thirty-three of this code, relating to the Insurance
Commissioner (mini COBRA, 114 CSR 93), is authorized with the
following amendments:

On page three, subsection 3.5., after the word “subsection” by
striking out “3.5." and inserting in lieu thereof “3.4.”;

And,

On page four, subsection 3.7., by striking out all of
subsection 3.7. and inserting in lieu thereof a new subsection
3.7., to read as follows:

3.7. Remedies in the event of carrier noncompliance. If a
carrier fails to comply with the requirements of this rule,
including the notice requirements of subsection 3.5. of this
section, and such noncompliance results in the failure of an
eligible adult qualified beneficiary of a covered employee to
timely elect continuation coverage, every qualified beneficiary of
the covered employee covered on the day of the qualifying event
shall remain covered under the health benefit plan until the
qualified beneficiaries are afforded the opportunity to elect such
coverage.

(f) The legislative rule filed in the State Register on July
28, 2011, authorized under the authority of section ten, article
two, chapter thirty-three of this code, relating to the Insurance
Commissioner (Workers’ Compensation Insurance for state agencies,
114 CSR 94), is authorized with the following amendments:

On page one, subsection 2.2., by striking out all of
subsection 2.2. and inserting in lieu thereof a new subsection
2.2., to read as follows:

On page two, subsection 2.8., by striking out the words “and
those discretionary participants that have agreed to participate in
SAWC under an agreement with the Commissioner” and inserting in
lieu thereof the words “and for those discretionary participants
that participate in SAWC”;

On page two, subsection 3.1., by striking out the words “and
shall send to each a notice of such determination”;

On page two, subdivision 3.1.a., by striking out the words
“Such notice shall inform: (I) Executive state entities that they
will be required to execute the Agreement and” and inserting in
lieu thereof the words “The Commissioner shall inform: (I)
Executive state entities that they will be required”;

On page two, subdivision 3.1.b., by striking out the words
“Any recipient of a notice sent pursuant to subdivision a of this
subsection that believes it should have been classified
differently, or any entity that did not receive a notice” and
inserting in lieu thereof the words “Any entity that believes it
should have been classified differently, or any entity that did not
receive a notice of eligibility”;

On page two, subsection 3.2., by striking out all of
subsection 3.2. and inserting in lieu thereof a new subsection
3.2., to read as follows:

3.2. The Commissioner may make participation in SAWC by a
discretionary participant contingent on the execution of the
Agreement.;

On page three, subdivision 3.3.a., after the word “Agreement”
by inserting the words “or other noncompliance with program
requirements”;

On page three, subdivision 3.3.c., by striking out the words
“the latter of one year from removal or the next open enrollment
period” and inserting in lieu thereof the words “a period of not
more than one year to be determined by the commissioner based on
the seriousness of the non-compliance and the efforts of the
participant to come into compliance”;

On page three, subdivision 3.3.d., by striking out the words
“upon application and re-execution of the Agreement” and inserting
in lieu thereof the words “upon written request and expiration of
the exclusion period determined in accordance with subdivision
3.3.c. of this subsection”;

On page three, subdivision 3.4.a., by striking out the words
“any fee” and inserting in lieu thereof the words “any assessment”;

On page three, subdivision 3.4.a., by striking out the words
“assessed fee” and inserting in lieu thereof the word “assessment”;

On page three, subdivision 3.4.a., by striking out the words
“such fee” and inserting in lieu thereof the words “such
assessment”;

And,

On page three, subdivision 3.4.b., by striking out the word
“fees” and inserting in lieu thereof the word “assessment”.

§64-7-3. Division of Banking.

The legislative rule filed in the State Register on July 21,
2011, authorized under the authority of section three, article
seventeen, chapter thirty-one of this code, relating to the
Division of Banking (residential mortgage lenders, brokers and loan
originators, 106 CSR 5), is authorized.

§64-7-4. Alcohol Beverage Control Commission.

(a) The legislative rule filed in the State Register on July
13, 2011, authorized under the authority of section six, article
three-a, chapter sixty of this code, modified by the Alcohol
Beverage Control Commission to meet the objections of the
Legislative Rule-Making Review Committee and refiled in the State
Register on November 21, 2011, relating to the Alcohol Beverage
Commission (licensed retailer operations, 175 CSR 1), is
authorized.

(b) The legislative rule filed in the State Register on July
13, 2011, authorized under the authority of section six, article
three-a, chapter sixty of this code, relating to the Alcohol
Beverage Control Commission (licensing of retail outlets, 175 CSR
5), is authorized.

§64-7-5. Racing Commission.

The legislative rule filed in the State Register on September
13, 2011, authorized under the authority of section twelve-d,
article twenty-three, chapter nineteen of this code, relating to
the Racing Commission (simulcast pari-mutual wagering at an
authorized gaming facility in a historic hotel, 178 CSR 7), is
authorized.

§64-7-6. Athletic Commission.

The legislative rule filed in the State Register on July 28,
2011, authorized under the authority of section three-a, article
five-a, chapter twenty-nine of this code, modified by the Athletic
Commission to meet the objections of the Legislative Rule-Making
Review Committee and refiled in the State Register on January 6,
2012, relating to the Athletic Commission (mixed martial arts, 177
CSR 2), is authorized with the following amendments:

On pages three and four, §177-2.5., by striking out all of
§177-2.5. and inserting in lieu thereof a new §177-2.5., to read as
follows:

§177-2.5. Venues must have a minimum seating capacity of 2,500
and video replay capabilities in good working order. However, the
Commission may waive the minimum seating capacity requirement.
Venues with a seating capacity of 3,500 or more must have a minimum
of four video monitors displaying a continuous live feed of the
match for the spectators; venues with a maximum seating capacity of
3,499 or less must have at least two monitors displaying a
continuous live feed of the match for the spectators. All such
video monitors must be a minimum of six feet by six feet. No event
shall take place until the venue has been approved by the
commission.;

On page twelve, subsection 29.5., by striking out all of
subsection 29.5. and inserting in lieu thereof a new subsection
29.5., to read as follows:

29.5. Prohibition of certain dressings. – No second shall be
permitted to use grease or any other substances on the body of a
contestant. The use of petroleum jelly in corners is not allowed
except in the use of stopping blood and on cuts. Petroleum jelly,
or other substances approved by the commission, may be used in
between rounds in the use of stopping blood and on cuts and only in
the presence of a representative of the commission. The use of
drugs, alcohols or stimulants during a match by any contestant is
adequate cause for revoking license.;

On page twenty, subsection 41.1., by striking out all of
subsection 41.1. and inserting in lieu thereof a new subsection
41.1., to read as follows:

41.1. Matches shall take place in a cage or ring that has been
approved by the commission. The cage or ring shall meet the
requirements set forth by the commission and is subject to
inspection prior to each match by a commission representative such
as a referee.;

On page twenty-one, subsection 41.3., by striking out all of
subsection 41.3. and inserting in lieu thereof a new subsection
41.3., to read as follows:

41.3. The commission shall determine all seating arrangements
at cage side necessary to effectuate the match. A promoter may
submit a proposed seating arrangement to the commission one week
before the event.;

And,

On page twenty-one, after subsection 41.3., by inserting a new
subsection, designated subsection 41.4., to read as follows:

41.4.a. The ring shall be no smaller than twenty feet square
and larger than thirty-two feet square within the ropes. One
corner shall have a red designation and the corner directly
opposite shall have a blue designation.

41.4.b. The floor must extend at least eighteen inches beyond
the ropes. The ring floor must be padded in a manner as approved
by the commission, with at least one inch layer of foam padding.
No vinyl or other plastic rubberized cover shall be permitted. The
fighting area canvas shall not be more than four feet above the
floor of the building and shall have suitable steps or ramp for use
by the participants.

41.4.c. Ring posts must be made of metal, not more than three
inches in diameter, extending from the floor of the building to a
minimum height of fifty-eight inches above the ring floor, and must
be properly padded in a manner approved by the commission. Ring
posts must be at least eighteen inches away from the ring ropes.

41.4.d. There must be five ring ropes, not less than one inch
in diameter and wrapped in soft material. The lowest ring rope
must be twelve inches above the ring floor.

41.4.e. There must not be any obstruction or object,
including, without limitation, a triangular border, on any part of
the ring floor.

§64-7-7. Directors of the West Virginia Health Insurance Plan.

The legislative rule filed in the State Register on July 28,
2011, authorized under the authority of section seven-b, article
forty-eight, chapter thirty-three of this code, relating to the
Board of Directors of the West Virginia Health Insurance Plan
(premium subsidy, 113 CSR 1), is authorized.